Page 50 - ar2013

48 Clarity CapitaRetail China Trust Annual Report 2013
INTEGRATED RETAIL REAL ESTATE MANAGEMENT PLATFORM
Growth
Strategies
Retail Real Estate Management Retail Real Estate Capital Management
Property
Management
Retail
Management
& Operational
Leasing
Strategic
Marketing
Design &
Development
Management
Asset
Management
Strategic
Planning &
Investment
Fund
Structuring &
Management
Retail Real Estate Unitholders
Distributions Net Property Income
Investment Ownership
AS THE MANAGER, WE
SEEK TO DRIVE CONTINUED
GROWTH OF CRCT
THROUGH THE FOLLOWING
THREE-PRONGED STRATEGY:
1. Enhancing Organic
Growth through Proactive
Asset Management
Most of our leases provide for
an annual step-up in the base
rent and for rent to be payable
on the basis of the higher of
either base rent or a percentage
of tenants’ gross sales turnover,
thereby providing stability and
potential upside in rental income.
Apart from organic growth
through rental receipts, we work
closely with the mall managers
to identify improvements to the
malls’ retail offerings and tenant
mix, and carry out marketing and
promotional initiatives to
drive up shopper traffic and
non-rental income.
2. Creating New Value
through Innovative Asset
Enhancement Strategies
We also actively explore
innovative asset enhancement
initiatives to improve the returns
of our malls. These include
the reconfiguration of the
retail units or floor plates to
achieve better efficiency
and higher rental potential, and
retro-fitting and refurbishing the
malls to maintain their appeal
to tenants and shoppers.
3. Capitalising on
Yield-Accretive Acquisitions
Growth Model
We are always identifying
and evaluating yield-accretive
acquisition opportunities from our
secured and proprietary pipeline,
and other third-party vendors.
CRCT is provided with long-term
growth potential from its rights
of first refusal to purchase
assets held by CapitaMalls
Asia sponsored private funds
– CapitaMalls China Income
Fund, CapitaMalls China Income
Fund II (previously known as
CapitaMalls China Incubator
Fund), CapitaMalls China Income
Fund III (previously known as
CapitaMalls China Development
Fund II), CapitaMalls China
Development Fund III, as well
as CapitaMalls Asia, one of
the largest listed shopping
mall developers, owners and
managers in Asia.
In evaluating acquisition
opportunities, we will focus on
properties which can maintain
or enhance CRCT’s distribution
yield; the properties’ potential
asset enhancement opportunities;
and properties with potential to
demonstrate strong growth in
occupancy rates, sustainable
rental yields, and quality tenant
and lease profiles.
CRCT enjoys access to CapitaMalls Asia’s integrated shopping mall business model,
with in-house capabilities in retail real estate investment, development, mall operations,
asset management and fund management.